Signa, Central Group acquire Swiss department store chain Globus
Signa and Central Group have jointly acquired Swiss luxury department store chain Globus along with eight associated real estate properties from Migros-Genossenschafts-Bund (MGB) under 50:50 joint investment.
The two firms jointly own Germany’s KaDeWe Group, with upcoming projects in Düsseldorf and Vienna, Austria, while Central Group owns nine of Italy’s La Rinascente and Denmark’s Illum stores.
With Globus, the combined presence of Signa and Central will span five countries on the continent – Germany, Austria, Italy, Denmark, and Switzerland – making both one of the leading operators and owners of luxury department stores in Europe.
"For the acquisition of Globus Switzerland, the deal is a joint venture between Central Group and SIGNA, our incumbent partner in the KaDeWe Group and a new project in Vienna. The transaction includes the purchase of prime Swiss properties and a hotel, worth over ₣1 billion altogether", said Central Group CEO and executive chairman Tos Chirathivat.
“Since entering Europe in 2011 by acquiring Rinascente, our business in Europe has grown from €200 million [Bt6.87 billion] to a projected €2 billion this year. Today, we operate in 19 cities in five European countries, plus two under development in Düsseldorf and Vienna, eight of which will be flagship stores. We are now one of the largest luxury retailers in Europe,” he added.
“Globus is a wonderful brand very close to our hearts,” said Vittorio Radice, CEO of Central Group Europe, representing the joint venture. “As a historic Swiss brand, Globus is a perfect fit for our European alliance with strong local presence and great international recognition. By working together, we will guarantee Globus and the rest of our brands a solid, sustainable and successful future,” he added.
The new owners aim to develop Globus into the leading luxury department store group in Switzerland, with a strong national identity by means of rapid integration and sustainable repositioning.
Said Radice: “Working with the KaDeWe Group, Rinascente and Illum, Globus will benefit from the know-how and experience necessary to develop and drive the department store of today. Together we will implement our successful business model at Globus. Our shareholders will invest substantially in Globus stores in order to guarantee its future sustainability for the long term.”
Radice will assume strategic leadership of the joint venture. According to the statement, he will be supported by an experienced team from the group of shareholders and affiliated companies. Globus CEO Thomas Herbert will become a member of the Board of Directors. Deputy CEO Franco Savastano will assume operative management as CEO.
The final acquisition is subject to approval by European competition authorities and should be completed by mid-2020.
